France is introducing continuous transaction controls (CTCs). From 2023, France will implement a mandatory B2B e-invoicing clearance and e-reporting obligation. With these comprehensive requirements, alongside the B2G e-invoicing obligation that is already mandatory, the government aims to increase efficiency, cut costs, and fight fraud.
From 2023, all B2B invoices will be transmitted through a central platform, or via certified service providers connected to that central platform. This e-invoice clearance will lay the foundation and provide the French tax authority with data relating to any domestic B2B transaction.
To effectively combat fraud, the tax authority will need access to more transaction data. Therefore, data that the tax authority will not receive as part of the e-invoice clearance process will be subject to the complementary e-reporting obligation. For example, B2C invoices and cross-border invoices, as well as certain payment data.
So the tax authority will receive B2C and B2B transaction data (including certain payment data) by two measures; the e-invoice clearance mandate combined with the e-reporting obligation.
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